In light of many fluctuating economic factors, gold prices move up and down in the same session, in light of momentary variables and developments, and fears surrounding the global economy.
At the beginning of the morning trading, gold declined in light of fears of a sharp increase in interest rates by the major central banks in order to curb inflationary pressures, but it rebounded in light of the emergence of other data.
Gold prices rose on Friday, supported by lower US Treasury yields, although the prospects for a Federal Reserve interest rate hike and a stronger dollar limited gains.
And by 1215 GMT, gold in spot transactions rose 0.5% to $ 1727.09 an ounce.
Prices fell to the lowest level in more than a year at 1680.25 dollars on Thursday, before closing up 1.3%, according to Archyde.com.
Gold is up 1.2% so far this week.
US gold futures rose 0.8% to $1,727 an ounce.
“Returns have fallen which might support the yellow metal in the short term,” said Craig Erlam, analyst at Oanda Exchange.
“If we are moving towards accepting low growth rates or a recession, gold can take advantage of the current momentum because it may eliminate the need for the Federal Reserve to be as sharp as it is now,” he added.
Investors are currently awaiting the Federal Reserve’s monetary policy meeting on July 26-27, when it is expected to raise interest rates by 75 basis points to control rising inflation.
The European Central Bank joined its global peers in combating soaring inflation and raising interest rates by more than expected, even as the euro zone economy suffered from the impact of the Russian war on Ukraine.
Higher interest rates increase the opportunity cost of owning the precious metal, which does not generate fixed returns, and boost the dollar, which makes gold expensive for buyers abroad.
As for other precious metals, silver settled in spot transactions at $ 18.78 an ounce, while platinum increased by one percent to $ 880 and palladium rose 0.5 percent to $ 1902.18.